EBRD, €58M package to Support Ukranian Tube Producer Centravis

The European Bank for Reconstruction and Development (EBRD) is supporting CJSC Centravis Production Ukraine, an Ukrainian manufacturer of seamless stainless steel tubes (SSST) and pipes.

The €58m funding will include an equity investment of €10m as well as a loan of €48m. Up to €33m of the loan will be syndicated to commercial banks.

The EBRD’s participation in the company’s equity will serve to strengthen its corporate governance standards, thus creating a benchmark for other large Ukrainian corporates.

This financing aims to raise governance and environmental standards throughout the country’s steel tubes and pipes sector.

The project is part of the Bank’s crisis response in Ukraine designed to restructure Centravis’ balance sheet and improve its equity position.

Commenting on the funding, EBRD Ukraine Director André Küüsvek said: “This support is crucial for large domestic producers and for Ukraine’s economy as a whole. Centravis, as a key global player, clearly falls into this category”.

Yuriy Atanasov, CEO of the International Holding Centravis, said: “This year Centravis is completing a complex program of technical modernisation of the production base worth over $120m. We have expanded our products range and our distribution network – now exporting tubes to 70 countries all over the world. The EBRD support will help us realise all strategic initiatives”.

CJSC Centravis Production Ukraine, created on the basis of Nikopolskiy South-pipe Plant, is a production platform of International Holding CENTRAVIS. Its General production volume in 2008 made up 16,580 tons. Holding’s turnover was $257m.



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